In 1985 a young nurse from Iceland, Gudrun Margret Palsdottir, decided to travel around the world. While travelling through Central-America she witnessed much poverty which touched her deeply. She concluded that people that poor would only try to survive so they would never buy themselves a book. She started to buy books to give to those in most need. While she was handing out the books she discovered that many people were illiterate. That touched her even more so she decided to dedicate her life to changing such circumstances.

ABC Children’s Aid was registered in Iceland as NGO in 1988. The first project was to finance literacy projects among Indians in Mexico. In 1990 ABC started to help children in the Philippines to go to school through the Scandinavian Children's Mission. Educating children has been the main focus of ABC Children's Aid.

The purpose of ABC Children's Aid is to provide children a permanent support in the form of education. We believe that education is the most important link in breaking the cycle of poverty.

ABC Children's Aid works with individual sponsorship. Sponsors pay monthly educational support for a certain child, receiving information on the childs' progress.